Former clerk of court indicted on federal charge

Wednesday

Elizabeth Mason Smith was indicted Wednesday on a one-count federal charge of conversion of public funds, according to U.S. Attorney Bill Nettles.

Smith, 47, is the former Beaufort County Clerk of Court who was convicted Tuesday of misconduct in office and four counts of embezzlement.

Smith allegedly diverted at least $68,500 in federal child support money to pay the judicial salary of a family member working for the Beaufort County Drug Court, according to the indictment.

Smith's husband, V. Manning Smith, was the Beaufort County Drug Court judge until he was removed from the bench by S.C. Supreme Court Chief Justice Jean Toal in August 2009.

Toal did not give a reason for Manning Smith's removal.

Federal regulations prohibit the use of such funds for judicial and staff compensation and office-related costs, according to a press release from the U.S. Attorney's Office.

Elizabeth Smith, in her capacity as clerk of court, had control over the federal child support money, according to the U.S. Attorney's Office.

The Smiths now live in Florence.

Elizabeth Smith was found guilty in Beaufort County General Sessions Court of spending $23,511 from two clerk's office accounts on insurance for her family and costs associated with a family vacation home at Pawley's Island.

She was sentenced overall to probation for three years and 200 hours of community service.

Nettles said the maximum penalty Elizabeth Smith could receive for the federal crime is a fine of $250,000 and/or imprisonment of 10 years.

Nettles said that the case was investigated by agents of the U.S. Department of Health and Human Services and Office of the Inspector General.

He said the case has been assigned to Assistant U.S. Attorney Winston Holliday of the Columbia office for prosecution.

Elizabeth Smith, a Republican, was elected clerk of court in 2000 and re-elected in 2004 and 2008. She resigned July 30, shortly after she was indicted by the Beaufort County Grand Jury.

Administration of the Beaufort County Drug Court was taken over by the 14th Judicial Circuit Solicitor's Office after Manning Smith was unseated.

Solicitor Duffie Stone of the 14th Circuit said Carol Roof was appointed as the Drug Court judge by the Supreme Court.

"We've made some pretty significant changes," Stone said Wednesday.

The federal investigation actually preceded the state indictment, Stone said.

The Solicitor's Office "has been working closely with the U.S. Department of Health and Human Services and the U.S. Attorney's office since August of last year," he said.

The investigation involved "four-D money," he said, which is a federal government child support enforcement fund that is administered on the state level by the S.C. Department of Social Services.

"I went forward with (state) indictments, if nothing else to stop the process, knowing that the investigation and audits could take some time. Something had to be done quickly," he said.

Choate then met with Special Agent Brian Dimler of the federal Health and Human Services Department.

Stone said his office also turned over a forensic audit of the Clerk of Court's Office to the U.S. Attorney's office.

According to the federal indictment:

"As the Clerk of Court, Elizabeth Mason Smith controlled 14 county accounts, including three Title IV-D Child Support Accounts.

"As the Clerk of Court, Elizabeth Mason Smith was also the registered agent for the Beaufort County Drug Court, also known as the Beaufort County Problem Solving Court.... The Drug Court is a 501(c)(3) corporation responsible for handling misdemeanor-type drug cases in Beaufort County.

"In January 2006, Elizabeth Mason Smith wrote two checks from the Clerk of Court Title IV-D Unit Cost and Reimbursement Account directly to the judge. The two checks include 1029, transacted on or about Jan. 4, 2006, for $60,000 and 1030, dated Jan. 4, 2006, for $8,500. The checks were signed by Elizabeth Mason Smith and endorsed in the name of the judge by Elizabeth Mason Smith. These checks were purportedly for purposes of paying the judge's salary, in contravention of federal regulations regarding the use of Title IV-D money.

"In addition to those checks, Elizabeth Mason Smith caused at least three checks totaling $270,000 to be diverted from Title IV-D money to the Drug Court. The Drug Court then issued multiple checks to the judge for salary starting in January 2007, as well as a number of checks for unauthorized, miscellaneous expenses. The total of these expenses and checks was $112,730.20."

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